Amended in Senate January 17, 2014

Amended in Senate September 6, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 485

Introduced by Assembly Member Gomez

February 19, 2013

An act to amend Sections 110003, 110005, 110006, 110007, 110008, 110009, 110011, and 110021 of, and to amend and repeal Section 6253.2 of, the Government Code, to amend Sections 12300.5, 12300.7, and 14186.35 of, to amend and repeal Sections 10101.1, 12306, and 12306.1 of, and to repeal Section 12302.25 of, the Welfare and Institutions Code, and to amend Section 34 of Chapter 37 of the Statutes of 2013, relating to in-home supportive services.

LEGISLATIVE COUNSEL’S DIGEST

AB 485, as amended, Gomez. In-home supportive services.

Existing law establishes the county-administered In-Home Supportive Services (IHSS) program, under which qualified aged, blind, and disabled persons are provided with services in order to permit them to remain in their own homes and avoid institutionalization. Existing law establishes the Medi-Cal program, which is administered by the State Department of Health Care Services, under which qualified low-income individuals receive health care services. The Medi-Cal program is, in part, governed and funded by federal Medicaid Program provisions.

Existing law establishes, as part of the Coordinated Care Initiative, the In-Home Supportive Services Employer-Employee Relations Act, which serves to resolve disputes regarding wages, benefits, and other terms and conditions of employment between the California In-Home Supportive Services Authority (Statewide Authority) and recognized employee organizations providing in-home supportive services. Existing law establishes the Statewide Authority and requires the authority to be the entity authorized to meet and confer in good faith regarding wages, benefits, and other terms and conditions of employment with representatives of recognized employee organizations for any individual provider who is employed by a recipient of supportive services.

Existing law provides, as part of the Coordinated Care Initiative, that IHSS is a Medi-Cal benefit available through managed care health care plans in specified counties and requires enrollment of eligible Medi-Cal beneficiaries into managed care pursuant to a specified demonstration project or other provisions, including managed care for long-term services and supports, as one of the conditions that would be required to be completed before the Statewide Authority assumes the specified responsibilities. Existing law provides that no sooner than March 1, 2013, the Statewide Authority shall assume specified responsibilities in a county or city and county upon notification by the Director of Health Care Services that the enrollment of eligible Medi-Cal beneficiaries described in specified provisions of law has been completed in that county or city and county. Under existing law, in counties where IHSS is a Medi-Cal benefit available through managed care health plans, those health plans are required to assume specified duties, including entering into a memorandum of understanding with a county agency to perform specified activities, after the director provides that notification. Under existing law, the assumption of these responsibilities by the Statewide Authority is also known as the county implementation date.

This bill would, instead, make the implementation date begin delete January 1, 2014, end delete begin insert January 1, 2015, end insert would delete the reference to the “county” implementation date, and would make conforming changes.

Existing law conditions implementation of the Coordinated Care Initiative, as defined, on whether the Director of Finance estimates that the Coordinated Care Initiative will generate net General Fund savings, as specified. Existing law, with certain exceptions, specifies those provisions of law that are within the scope of the initiative to become inoperative if this condition is not met.

This bill would modify the definition of the Coordinate Care Initiative for the purposes of determining which provisions become inoperative if the condition is not met, and exclude, among others, those provisions that establish the In-Home Supportive Services Employer-Employee Relations Act, establish the Statewide Authority and determine the duties of, and when those duties are assumed by, the authority, establish the IHSS Fund, which is used to fund the Statewide Authority, and require all counties, commencing July 1, 2012, to have a County IHSS Maintenance of Effort (MOE) and to pay the County IHSS MOE instead of paying the nonfederal share of IHSS costs, as specified. The bill would make conforming changes.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 6253.2 of the Government Code, as
amended by Section 1 of Chapter 37 of the Statutes of 2013, is
amended to read:

6253.2.  

(a) Notwithstanding any other provision of this chapter
to the contrary, information regarding persons paid by the state to
provide in-home supportive services pursuant to Article 7
(commencing with Section 12300) of Chapter 3 of Part 3 of
Division 9 of the Welfare and Institutions Code, or services
provided pursuant to Section 14132.95, 14132.952, or 14132.956
of the Welfare and Institutions Code, is not subject to public
disclosure pursuant to this chapter, except as provided in
subdivision (b).

(b) Copies of names, addresses, and telephone numbers of
persons described in subdivision (a) shall be made available, upon
request, to an exclusive bargaining agent and to any labor
organization seeking representation rights pursuant to Section
12301.6 or 12302.25 of the Welfare and Institutions Code or the
In-Home Supportive Services Employer-Employee Relations Act
(Title 23 (commencing with Section 110000)). This information
shall not be used by the receiving entity for any purpose other than
the employee organizing, representation, and assistance activities
of the labor organization.

(c) This section applies solely to individuals who provide
services under the In-Home Supportive Services Program (Article
7 (commencing with Section 12300) of Chapter 3 of Part 3 of
Division 9 of the Welfare and Institutions Code), the Personal Care
Services Program pursuant to Section 14132.95 of the Welfare
and Institutions Code, the In-Home Supportive Services Plus
Option pursuant to Section 14132.952 of the Welfare and
Institutions Code, or the Community First Choice Option pursuant
to Section 14132.956 of the Welfare and Institutions Code.

(d) Nothing in this section is intended to alter or shall be
interpreted to alter the rights of parties under the In-Home
Supportive Services Employer-Employee Relations Act (Title 23
(commencing with Section 110000)) or any other labor relations
law.

SEC. 2.  

Section 6253.2 of the Government Code, as amended
by Section 2 of Chapter 37 of the Statutes of 2013, is repealed.

SEC. 3.  

Section 110003 of the Government Code is amended
to read:

110003.  

As used in this title:

(a) “Board” means the Public Employment Relations Board
established pursuant to Section 3541.

(b) “Employee” or “individual provider” means any person
authorized to provide in-home supportive services pursuant to
Article 7 (commencing with Section 12300) of Chapter 3 of Part
3 of Division 9 of the Welfare and Institutions Code, and Sections
14132.95, 14132.952, and 14132.956 of the Welfare and
Institutions Code, pursuant to the individual provider mode, as
referenced in Section 12302.2 of the Welfare and Institutions Code.
As used in this title, “employee” or “individual provider” does not
include any person providing in-home supportive services pursuant
to the county-employed homemaker mode or the contractor mode,
as authorized in Section 12302 of the Welfare and Institutions
Code. Individual providers shall not be deemed to be employees
of the Statewide Authority for any other purpose, except as
expressly set forth in this title.

(c) “Employee organization” means an organization that includes
employees, as defined in subdivision (b), and that has as one of
its primary purposes representing those employees in their relations
with the Statewide Authority.

(d) “Employer” means, for the purposes of collective bargaining,
the Statewide Authority established pursuant to Section 6531.5.
The in-home supportive services recipient shall be the employer
of an individual in-home supportive services provider with the
unconditional and exclusive right to hire, fire, and supervise his
or her provider.

(e) “In-home supportive services” or “IHSS” means services
provided pursuant to Article 7 (commencing with Section 12300)
of Chapter 3 of Part 3 of Division 9 of the Welfare and Institutions
Code, and Sections 14132.95, 14132.952, and 14132.956 of the
Welfare and Institutions Code.

(f) “In-home supportive services recipient” means the individual
who receives the in-home supportive services provided by the
individual provider. The in-home supportive services recipient is
the employer for the purposes of hiring, firing, and supervising
his or her respective individual provider.

(g) “Mediation” means effort by an impartial third party to assist
in reconciling a dispute regarding wages, benefits, and other terms
and conditions of employment, as defined in Section 110023,
between representatives of the employer and the recognized
employee organization or recognized employee organizations
through interpretation, suggestion, and advice.

(h) “Meet and confer in good faith” means that the employer,
or those representatives as it may designate, and representatives
of recognized employee organizations, shall have the mutual
obligation personally to meet and confer promptly upon request
by either party and continue for a reasonable period of time in
order to exchange freely information, opinions, and proposals, and
to endeavor to reach agreement on matters within the scope of
representation prior to the adoption of the annual Budget Act.

(i) “Predecessor agency” means a county or an entity established
pursuant to Section 12301.6 of the Welfare and Institutions Code
before the effective date of this title.

(j) “Recognized employee organization” means an employee
organization that has been formally acknowledged as follows:

(1) Before the implementation date as described in subdivision
(a) of Section 12300.7 of the Welfare and Institutions Code, by a
county or an entity established pursuant to Section 12301.6 of the
Welfare and Institutions Code, as the representative of individual
providers in its jurisdiction.

(2) On or after the implementation date as described in
subdivision (a) of Section 12300.7 of the Welfare and Institutions
Code, by the Statewide Authority, as the representative of
individual providers subject to this title.

(k) “Statewide Authority” means the California In-Home
Supportive Services Authority established pursuant to Section
6531.5.

SEC. 4.  

Section 110005 of the Government Code is amended
to read:

110005.  

For the purposes of this title, the implementation date
is defined in subdivision (a) of Section 12300.7 of the Welfare and
Institutions Code.

SEC. 5.  

Section 110006 of the Government Code is amended
to read:

110006.  

For purposes of collective bargaining, and as expressly
set forth in subdivision (d) of Section 110003, the Statewide
Authority is deemed to be the employer of record of individual
providers in each county as of the implementation date. In-home
supportive services recipients shall retain the right to hire, fire,
and supervise the work of the individual providers providing
services to them.

SEC. 6.  

Section 110007 of the Government Code is amended
to read:

110007.  

Individual providers employed by any predecessor
agency as of the implementation date shall retain employee status
and shall not be required by the Statewide Authority to requalify
to receive payment for providing services pursuant to Article 7
(commencing with Section 12300) of Chapter 3 of Part 3 of
Division 9 of the Welfare and Institutions Code. In the same
manner as set forth in subdivision (e) of Section 12305.86 of the
Welfare and Institutions Code, the Statewide Authority shall accept
a clearance that was obtained or accepted by any predecessor
agency pursuant to Article 7 (commencing with Section 12300)
of Chapter 3 of Part 3 of Division 9 of the Welfare and Institutions
Code. Existence of a clearance shall be determined by verification
through the case management, information, and payroll system of
the predecessor agency that the predecessor agency has deemed
the provider to be eligible to receive payment for providing services
pursuant to Article 7 (commencing with Section 12300) of Chapter
3 of Part 3 of Division 9 of the Welfare and Institutions Code.

SEC. 7.  

Section 110008 of the Government Code is amended
to read:

110008.  

On the implementation date, separate bargaining units
shall be created consistent with the bargaining units that have been
recognized by predecessor agencies. Bargaining units consisting
of employees in a single county shall be the only appropriate unit
for collective bargaining under this title. In those counties where
no recognized employee organization exists as of the
implementation date, a bargaining unit consisting of all employees
in that county shall be deemed an appropriate unit for collective
bargaining.

SEC. 8.  

Section 110009 of the Government Code is amended
to read:

110009.  

If, on the implementation date, individual providers
are represented by a recognized employee organization, the
Statewide Authority shall be deemed the successor employer of
the predecessor agency for the purposes of negotiating a collective
bargaining agreement, and shall be obligated to recognize and to
meet and confer in good faith with the recognized employee
organization on all matters within the scope of representation, as
defined in Section 110023, as to those individual providers.

SEC. 9.  

Section 110011 of the Government Code is amended
to read:

110011.  

(a) Except as otherwise expressly provided in this
title, the enactment of this title shall not be a cause for the employer
or any predecessor agency to modify or eliminate any existing
memorandum of agreement or understanding, or to modify existing
wages, benefits, or other terms and conditions of employment.
Except to the extent set forth in this title, the enactment of this title
shall not prevent the modification of existing wages, benefits, or
terms and conditions of employment through the meet and confer
in good faith process or, in those situations in which the employees
are not represented by a recognized employee organization, through
appropriate procedures.

(b) On the implementation date, subject to Section 12306.15 of
the Welfare and Institutions Code, the Statewide Authority shall
assume the predecessor agency’s rights and obligations under any
memorandum of understanding or agreement between the
predecessor agency and a recognized employee organization that
is in effect on the implementation date for the duration thereof.
Absent mutual consent to reopen, the terms of any transferred
memorandum of understanding or agreement shall continue until
the memorandum of understanding or agreement has expired. If a
memorandum of understanding or agreement between a recognized
employee organization and a predecessor agency has expired and
has not been replaced by a successor memorandum of
understanding or agreement as of the implementation date, the
Statewide Authority shall assume the obligation to meet and confer
in good faith with the recognized employee organization.

(c) Notwithstanding any other provision of law, except to the
extent set forth in this chapter and as limited by Section 110023,
the terms and conditions of any memorandum of understanding
or agreement between a predecessor agency and a recognized
employee organization in effect on the implementation date shall
not be reduced, except by mutual agreement between the
recognized employee organization and the Statewide Authority.

(d) Nothing in this title shall be construed to relieve any
predecessor agency of its obligation to meet and confer in good
faith with a recognized employee organization pursuant to the
Meyers-Milias-Brown Act (Chapter 10 (commencing with Section
3500) of Division 4 of Title 1) until the implementation date.
Nothing in this title shall permit the predecessor agency to meet
and confer after the Statewide Authority assumes the predecessor
agency’s rights and obligations on the implementation date.

(e) With the exception of all economic terms covered by Section
12306.15 of the Welfare and Institutions Code and notwithstanding
any other provision of law, beginning July 1, 2012, and ending on
the implementation date as set forth in subdivision (a) of Section
12300.7 of the Welfare and Institutions Code, any alterations or
modifications to either current or expired memoranda of
understanding that were in effect on July 1, 2012, and any newly
negotiated memoranda of understanding or agreements reached
after July 1, 2012, shall be submitted for review to the State
Department of Social Services, hereafter referred to as the
department. This review shall be performed by the department
until the Statewide Authority becomes operational, after which
date the Statewide Authority shall continue to perform this review.
If, upon review, but not later than 180 days before the
implementation date, the department or Statewide Authority
reasonably determines that there are one or more newly negotiated
or amended noneconomic terms in the memorandum of
understanding or agreement to which it objects for a bona fide
business-related reason, the department or Statewide Authority
shall provide written notice to the signatory recognized employee
organization of each objection and the reason for it. Upon demand
from the recognized employee organization, the department, or
the Statewide Authority, those parties shall meet and confer
regarding the objection and endeavor to reach agreement prior to
the implementation date. If an agreement is reached, it shall not
become effective prior to the implementation date. If an agreement
is not reached by the implementation date, the objectionable
language is deemed inoperable as of the implementation date. All
terms to which no objection is made shall be deemed accepted by
the Statewide Authority. If the Statewide Authority or the
department fails to provide the 180 days’ notice of objection, it
shall be deemed waived.

SEC. 10.  

Section 110021 of the Government Code is amended
to read:

110021.  

If a predecessor agency is party to any memorandum
of understanding or agreement with any bargaining unit that
includes individual providers that contains an agency shop
provision as of the effective date of this title, the predecessor
agency and the employer shall be obligated to honor the terms of
the agency shop provision, including indemnification provisions,
if any, for the duration of the memorandum of understanding or
agreement, and until the adoption of a successor memorandum of
understanding or agreement. However, upon the request of a
recognized employee organization, an agency shop provision in
effect on the implementation date may be reopened for the sole
purpose of renegotiating the terms of that provision in accordance
with this title. The implementation of this title shall not be a cause
for a new agency shop election.

SEC. 11.  

Section 10101.1 of the Welfare and Institutions Code,
as amended by Section 5 of Chapter 37 of the Statutes of 2013, is
amended to read:

10101.1.  

(a) For the 1991-92 fiscal year and each fiscal year
thereafter, the state’s share of the costs of the county services block
grant and the in-home supportive services administration
requirements shall be 70 percent of the actual nonfederal
expenditures or the amount appropriated by the Legislature for
that purpose, whichever is less.

(b) Federal funds received under Title 20 of the federal Social
Security Act (42 U.S.C. Sec. 1397 et seq.) and appropriated by the
Legislature for the county services block grant and the in-home
supportive services administration shall be considered part of the
state share of cost and not part of the federal expenditures for this
purpose.

(c) For the period during which Section 12306.15 is operative,
each county’s share of the nonfederal costs of the county services
block grant and the in-home supportive services administration
requirements as specified in subdivision (a) shall remain, but the
County IHSS Maintenance of Effort pursuant to Section 12306.15
shall be in lieu of that share.

SEC. 12.  

Section 10101.1 of the Welfare and Institutions Code,
as amended by Section 6 of Chapter 37 of the Statutes of 2013, is
repealed.

SEC. 13.  

Section 12300.5 of the Welfare and Institutions Code
is amended to read:

12300.5.  

(a) The California In-Home Supportive Services
Authority, hereafter referred to as the Statewide Authority,
established pursuant to Section 6531.5 of the Government Code,
shall be the entity authorized to meet and confer in good faith
regarding wages, benefits, and other terms and conditions of
employment in accordance with Title 23 (commencing with Section
110000) of the Government Code, with representatives of
recognized employee organizations for any individual provider
who is employed by a recipient of in-home supportive services
described in Section 12300 after the implementation date as
described in subdivision (a) of Section 12300.7.

(b) The Statewide Authority and the Department of Human
Resources and other state departments may enter into a
memorandum of understanding or other agreement to have the
Department of Human Resources meet and confer on behalf of the
Statewide Authority for the purposes described in subdivision (a)
or to provide the Statewide Authority with other services,
including, but not limited to, administrative and legal services.

(c) The state, the Statewide Authority, or any county that has
met the conditions in Section 12300.7 shall not be deemed to be
the employer of any individual provider who is employed by a
recipient of in-home supportive services as described in Section
12300 for purposes of liability due to the negligence or intentional
torts of the individual provider.

SEC. 14.  

Section 12300.7 of the Welfare and Institutions Code
is amended to read:

12300.7.  

(a) On January 1, begin delete 2014, end delete begin insert 2015, end insert the California In-Home
Supportive Services Authority shall assume the responsibilities
set forth in Title 23 (commencing with Section 110000) of the
Government Code.

(b) A county or city and county, subject to subdivision (a), shall
do one or both of the following:

(1) Have the entity that performed functions set forth in the
county ordinance or contract in effect prior to January 1, begin delete 2014, end delete
begin insert 2015, end insert and established pursuant to Section 12301.6 continue to
perform those functions, excluding subdivision (c) of that section.

(2) Assume the functions performed by the entity, prior to
January 1, begin delete 2014, end delete begin insert 2015, end insert pursuant to Section 12301.6, excluding
subdivision (c) of that section.

(c) If a county or city and county assumes the functions
described in paragraph (2) of subdivision (b), it may establish or
contract with an entity for the performance of any or all of the
functions assumed.

SEC. 15.  

Section 12302.25 of the Welfare and Institutions
Code, as amended by Section 34 of Chapter 8 of the Statutes of
2011, is repealed.

SEC. 16.  

Section 12306 of the Welfare and Institutions Code,
as amended by Section 8 of Chapter 37 of the Statutes of 2013, is
amended to read:

12306.  

(a) The state and counties shall share the annual cost
of providing services under this article as specified in this section.

(b) Except as provided in subdivisions (c) and (d), the state shall
pay to each county, from the General Fund and any federal funds
received under Title XX of the federal Social Security Act available
for that purpose, 65 percent of the cost of providing services under
this article, and each county shall pay 35 percent of the cost of
providing those services.

(c) For services eligible for federal funding pursuant to Title
XIX of the federal Social Security Act under the Medi-Cal program
and, except as provided in subdivisions (b) and (d) begin insert , end insert the state shall
pay to each county, from the General Fund and any funds available
for that purpose begin insert , end insert 65 percent of the nonfederal cost of providing
services under this article, and each county shall pay 35 percent
of the nonfederal cost of providing those services.

(d) (1) For the period of July 1, 1992, to June 30, 1994,
inclusive, the state’s share of the cost of providing services under
this article shall be limited to the amount appropriated for that
purpose in the annual Budget Act.

(2) The department shall restore the funding reductions required
by subdivision (c) of Section 12301, fully or in part, as soon as
administratively practicable, if the amount appropriated from the
General Fund for the 1992-93 fiscal year under this article is
projected to exceed the sum of the General Fund expenditures
under Section 14132.95 and the actual General Fund expenditures
under this article for the 1992-93 fiscal year. The entire amount
of the excess shall be applied to the restoration. Services shall not
be restored under this paragraph until the Department of Finance
has determined that the restoration of services would result in no
additional costs to the state or to the counties relative to the
combined state appropriation and county matching funds for
in-home supportive services under this article in the 1992-93 fiscal
year.

(e) For the period during which Section 12306.15 is operative,
each county’s share of the costs of providing services pursuant to
this article specified in subdivisions (b) and (c) shall remain, but
the County IHSS Maintenance of Effort pursuant to Section
12306.15 shall be in lieu of that share.

SEC. 17.  

Section 12306 of the Welfare and Institutions Code,
as amended by Section 9 of Chapter 37 of the Statutes of 2013, is
repealed.

SEC. 18.  

Section 12306.1 of the Welfare and Institutions Code,
as amended by Section 10 of Chapter 37 of the Statutes of 2013,
is amended to read:

12306.1.  

(a) When any increase in provider wages or benefits
is negotiated or agreed to by a public authority or nonprofit
consortium under Section 12301.6, then the county shall use
county-only funds to fund both the county share and the state share,
including employment taxes, of any increase in the cost of the
program, unless otherwise provided for in the annual Budget Act
or appropriated by statute. No increase in wages or benefits
negotiated or agreed to pursuant to this section shall take effect
unless and until, prior to its implementation, the department has
obtained the approval of the State Department of Health Care
Services for the increase pursuant to a determination that it is
consistent with federal law and to ensure federal financial
participation for the services under Title XIX of the federal Social
Security Act, and unless and until all of the following conditions
have been met:

(1) Each county has provided the department with
documentation of the approval of the county board of supervisors
of the proposed public authority or nonprofit consortium rate,
including wages and related expenditures. The documentation shall
be received by the department before the department and the State
Department of Health Care Services may approve the increase.

(2) Each county has met department guidelines and regulatory
requirements as a condition of receiving state participation in the
rate.

(b) Any rate approved pursuant to subdivision (a) shall take
effect commencing on the first day of the month subsequent to the
month in which final approval is received from the department.
The department may grant approval on a conditional basis, subject
to the availability of funding.

(c) The state shall pay 65 percent, and each county shall pay 35
percent, of the nonfederal share of wage and benefit increases
negotiated by a public authority or nonprofit consortium pursuant
to Section 12301.6 and associated employment taxes, only in
accordance with subdivisions (d) to (f), inclusive.

(d) (1) The state shall participate as provided in subdivision (c)
in wages up to seven dollars and fifty cents ($7.50) per hour and
individual health benefits up to sixty cents ($0.60) per hour for all
public authority or nonprofit consortium providers. This paragraph
shall be operative for the 2000-01 fiscal year and each year
thereafter unless otherwise provided in paragraphs (2), (3), (4),
and (5), and without regard to when the wage and benefit increase
becomes effective.

(2) The state shall participate as provided in subdivision (c) in
a total of wages and individual health benefits up to nine dollars
and ten cents ($9.10) per hour, if wages have reached at least seven
dollars and fifty cents ($7.50) per hour. Counties shall determine,
pursuant to the collective bargaining process provided for in
subdivision (c) of Section 12301.6, what portion of the nine dollars
and ten cents ($9.10) per hour shall be used to fund wage increases
above seven dollars and fifty cents ($7.50) per hour or individual
health benefit increases, or both. This paragraph shall be operative
for the 2001-02 fiscal year and each fiscal year thereafter, unless
otherwise provided in paragraphs (3), (4), and (5).

(3) The state shall participate as provided in subdivision (c) in
a total of wages and individual health benefits up to ten dollars
and ten cents ($10.10) per hour, if wages have reached at least
seven dollars and fifty cents ($7.50) per hour. Counties shall
determine, pursuant to the collective bargaining process provided
for in subdivision (c) of Section 12301.6, what portion of the ten
dollars and ten cents ($10.10) per hour shall be used to fund wage
increases above seven dollars and fifty cents ($7.50) per hour or
individual health benefit increases, or both. This paragraph shall
be operative commencing with the next state fiscal year for which
the May Revision forecast of General Fund revenue, excluding
transfers, exceeds by at least 5 percent, the most current estimate
of revenue, excluding transfers, for the year in which paragraph
(2) became operative.

(4) The state shall participate as provided in subdivision (c) in
a total of wages and individual health benefits up to eleven dollars
and ten cents ($11.10) per hour, if wages have reached at least
seven dollars and fifty cents ($7.50) per hour. Counties shall
determine, pursuant to the collective bargaining process provided
for in subdivision (c) of Section 12301.6, what portion of the eleven
dollars and ten cents ($11.10) per hour shall be used to fund wage
increases or individual health benefits, or both. This paragraph
shall be operative commencing with the next state fiscal year for
which the May Revision forecast of General Fund revenue,
excluding transfers, exceeds by at least 5 percent, the most current
estimate of revenues, excluding transfers, for the year in which
paragraph (3) became operative.

(5) The state shall participate as provided in subdivision (c) in
a total cost of wages and individual health benefits up to twelve
dollars and ten cents ($12.10) per hour, if wages have reached at
least seven dollars and fifty cents ($7.50) per hour. Counties shall
determine, pursuant to the collective bargaining process provided
for in subdivision (c) of Section 12301.6, what portion of the
twelve dollars and ten cents ($12.10) per hour shall be used to fund
wage increases above seven dollars and fifty cents ($7.50) per hour
or individual health benefit increases, or both. This paragraph shall
be operative commencing with the next state fiscal year for which
the May Revision forecast of General Fund revenue, excluding
transfers, exceeds by at least 5 percent, the most current estimate
of revenues, excluding transfers, for the year in which paragraph
(4) became operative.

(e) (1) On or before May 14 immediately prior to the fiscal
year for which state participation is provided under paragraphs (2)
to (5), inclusive, of subdivision (d), the Director of Finance shall
certify to the Governor, the appropriate committees of the
Legislature, and the department that the condition for each
subdivision to become operative has been met.

(2) For purposes of certifications under paragraph (1), the
General Fund revenue forecast, excluding transfers, that is used
for the relevant fiscal year shall be calculated in a manner that is
consistent with the definition of General Fund revenues, excluding
transfers, that was used by the Department of Finance in the
2000-01 Governor’s Budget revenue forecast as reflected on
Schedule 8 of the Governor’s Budget.

(f) Any increase in overall state participation in wage and benefit
increases under paragraphs (2) to (5), inclusive, of subdivision (d),
shall be limited to a wage and benefit increase of one dollar ($1)
per hour with respect to any fiscal year. With respect to actual
changes in specific wages and health benefits negotiated through
the collective bargaining process, the state shall participate in the
costs, as approved in subdivision (c), up to the maximum levels
as provided under paragraphs (2) to (5), inclusive, of subdivision
(d).

(g) For the period during which Section 12306.15 is operative,
each county’s share of the costs of negotiated wage and benefit
increases specified in subdivision (c) shall remain, but the County
IHSS Maintenance of Effort pursuant to Section 12306.15 shall
be in lieu of that share.

SEC. 19.  

Section 12306.1 of the Welfare and Institutions Code,
as amended by Section 11 of Chapter 37 of the Statutes of 2013,
is repealed.

SEC. 20.  

Section 14186.35 of the Welfare and Institutions
Code is amended to read:

14186.35.  

(a) Not sooner than March 1, 2013, in-home
supportive services (IHSS) shall be a Medi-Cal benefit available
through managed care health plans in a county where this article
is effective. Managed care health plans shall cover IHSS in
accordance with the standards and requirements set forth in Article
7 (commencing with Section 12300) of Chapter 3. Specifically,
managed care health plans shall do all of the following:

(1) Ensure access to, provision of, and payment for IHSS for
individuals who meet the eligibility criteria for IHSS.

(2) Ensure recipients retain the right to be the employer, to
select, engage, direct, supervise, schedule, and terminate IHSS
providers in accordance with Section 12301.6.

(3) Assume all financial liability for payment of IHSS services
for recipients receiving said services pursuant to managed care.

(4) Create a care coordination team, as needed, unless the
consumer objects. If the consumer is an IHSS recipient, his or her
participation and the participation of his or her provider shall be
at the recipient’s option. The care coordination team shall include
the consumer, his or her authorized representative, managed care
health plan, county social services agency, Community Based
Adult Services (CBAS) case manager for CBAS clients,
Multipurpose Senior Services Program (MSSP) case manager for
MSSP clients, and may include others as identified by the
consumer.

(5) Maintain the paramedical role and function of providers as
authorized pursuant to Sections 12300 and 12301.

(6) Ensure compliance with all requirements set forth in Section
14132.956 and any resulting state plan amendments.

(7) Adhere to quality assurance provisions and individual data
and other standards and requirements as specified by the State
Department of Social Services including state and federal quality
assurance requirements.

(8) Share confidential beneficiary data with the contractors
specified in this section to improve care coordination, promote
shared understanding of the consumer’s needs, and ensure
appropriate access to IHSS and other long-term services and
supports.

(9) (A) Enter into a memorandum of understanding with a
county agency and the county’s public authority or nonprofit
consortium pursuant to Section 12301.6 to continue to perform
their respective functions and responsibilities pursuant to the
existing ordinance or contract until the implementation date set
forth in subdivision (a) of Section 12300.7.

(B) Following the implementation date set forth in subdivision
(a) of Section 12300.7, enter into a memorandum of understanding
with the county agencies to perform the following activities:

(i) Assess, approve, and authorize each recipient’s initial and
continuing need for services pursuant to Article 7 (commencing
with Section 12300) of Chapter 3. County agency assessments
shall be shared with the care coordination teams established under
paragraph (4), when applicable, and the county agency thereafter
may receive and consider additional input from the care
coordination team.

(ii) Plans may contract with counties for additional assessments
for purposes of paragraph (6) of subdivision (b) of Section 14186.

(iii) Enroll providers, conduct provider orientation, and retain
enrollment documentation pursuant to Sections 12301.24 and
12305.81.

(iv) Conduct criminal background checks on all potential
providers and exclude providers consistent with the provisions set
forth in Sections 12305.81, 12305.86, and 12305.87.

(v) Provide assistance to IHSS recipients in finding eligible
providers through the establishment of a provider registry as well
as provide training for providers and recipients as set forth in
Section 12301.6.

(vi) Refer all providers to the California In-Home Supportive
Services Authority or nonprofit consortium for the purposes of
wages, benefits, and other terms and conditions of employment in
accordance with subdivision (a) of Section 12300.7 and Title 23
(commencing with Section 110000) of the Government Code.

(vii) Pursue overpayment recovery pursuant to Section 12305.83.

(viii) Perform quality assurance activities including routine case
reviews, home visits, and detecting and reporting suspected fraud
pursuant to Section 12305.71.

(ix) Share confidential data necessary to implement the
provisions of this section.

(x) Appoint an advisory committee of not more than 11 people,
and no less than 50 percent of the membership of the advisory
committee shall be individuals who are current or past users of
personal assistance paid for through public or private funds or
recipients of IHSS services.

(xi) Continue to perform other functions necessary for the
administration of the IHSS program pursuant to Article 7
(commencing with Section 12300) of Chapter 3 and regulations
promulgated by the State Department of Social Services pursuant
to that article.

(C) A county may contract with an entity or may establish a
public authority pursuant to Section 12301.6 for the performance
of any or all of the activities set forth in a contract with a managed
care health plan pursuant to this section.

(10) Enter into a contract with the State Department of Social
Services to perform the following activities:

(A) Pay wages and benefits to IHSS providers in accordance
with the wages and benefits negotiated pursuant to Title 23
(commencing with Section 110000) of the Government Code.

(B) Perform obligations on behalf of the IHSS recipient as the
employer of his or her provider, including unemployment
compensation, disability benefits, applicable federal and state
taxes, and federal old age survivor’s and disability insurance
through the state’s payroll system for IHSS in accordance with
Sections 12302.2 and 12317.

(C) Provide technical assistance and support for all
payroll-related activities involving the state’s payroll system for
IHSS, including, but not limited to, the monthly restaurant
allowance as set forth in Section 12303.7, the monthly cash
payment in advance as set forth in Section 12304, and the direct
deposit program as set forth in Section 12304.4.

(D) Share recipient and provider data with managed care health
plans for members who are receiving IHSS to support care
coordination.

(E) Provide an option for managed care health plans to
participate in quality monitoring activities conducted by the State
Department of Social Services pursuant to subdivision (f) of
Section 12305.7 for recipients who are plan members.

(11) In concert with the department, timely reimburse the state
for payroll and other obligations of the beneficiary as the employer,
including unemployment compensation, disability benefits,
applicable federal and state taxes, and federal old age survivors
and disability insurance benefits through the state’s payroll system.

(12) In a county where services are provided in the homemaker
mode, enter into a contract with the county to implement the
provision of services pursuant to the homemaker mode as set forth
in Section 12302.

(13) Retain the IHSS individual provider mode as a choice
available to beneficiaries in all participating managed care health
plans in each county.

(14) In a county where services are provided pursuant to a
contract, and as needed, enter into a contract with a city, county,
or city and county agency, a local health district, a voluntary
nonprofit agency, or a proprietary agency as set forth in Section
12302 and in accordance with Section 12302.6.

(15) Assume the financial risk associated with the cost of payroll
and associated activities set forth in paragraph (10).

(b) IHSS recipients receiving services through managed care
health plans shall retain all of the following:

(1) The responsibilities as the employer of the IHSS provider
for the purposes of hiring, firing, and supervising their provider
of choice as set forth in Section 12301.6.

(2) The ability to appeal any action relating to his or her
application for or receipt of services pursuant to Article 7
(commencing with Section 12300) of Chapter 3.

(3) The right to employ a provider applicant who has been
convicted of an offense specified in Section 12305.87 by submitting
a waiver of the exclusion.

(4) The ability to request a reassessment pursuant to Section
12301.1.

(c) The department and the State Department of Social Services,
along with the counties, managed care health plans, consumers,
advocates, and other stakeholders, shall develop a referral process
and informational materials for the appeals process that is
applicable to home- and community-based services plan benefits
authorized by a managed care health plan. The process established
by this paragraph shall ensure ease of access for consumers.

(d) For services provided through managed care health plans,
the IHSS provider shall continue to adhere to the requirements set
forth in subdivision (b) of Section 12301.24, subdivision (a) of
Section 12301.25, subdivision (a) of Section 12305.81, and
subdivision (a) of Section 12306.5.

(e) In accordance with Section 14186.2, as the provision of
IHSS transitions to managed care health plans in a phased-in
approach, the State Department of Social Services shall do all of
the following:

(1) Retain program administration functions, in coordination
with the department, including policy development, provider
appeals and general exceptions, and quality assurance and program
integrity for the IHSS program in accordance with Article 7
(commencing with Section 12300) of Chapter 3.

(2) Perform the obligations on behalf of the recipient as
employer relating to workers’ compensation as set forth in Section
12302.2 and Section 12302.21 for those entities that have entered
into a contract with a managed care health plan pursuant to Section
12302.6.

(3) Retain responsibilities related to the hearing process for
IHSS recipient appeals as set forth in Chapter 7 (commencing with
Section 10950) of Part 2.

(4) Continue to have access to and provide confidential recipient
data necessary for the administration of the program.

(f) A managed care health plan shall not be deemed begin insert to end insert be the
employer of an individual in-home supportive services provider
referred to recipients under this section for purposes of liability
due to the negligence or intentional torts of the individual provider.

SEC. 21.  

Section 34 of Chapter 37 of the Statutes of 2013 is
amended to read:

Sec. 34.  

(a) At least 30 days prior to enrollment of beneficiaries
into the Coordinated Care Initiative, the Director of Finance shall
estimate the amount of net General Fund savings obtained from
the implementation of the Coordinated Care Initiative. This
estimate shall take into account any net savings to the General
Fund achieved through the tax imposed pursuant to Article 5
(commencing with Section 6174) of Chapter 2 of Part 1 of Division
2 of the Revenue and Taxation Code Article 5 (commencing with
Section 6174).

(b) (1) By January 10 begin delete for end delete begin insert of end insert each fiscal year after
implementation of the Coordinated Care Initiative, for as long as
the Coordinated Care Initiative remains operative, the Director of
Finance shall estimate the amount of net General Fund savings
obtained from the implementation of the Coordinated Care
Initiative.

(2) Savings shall be determined under this subdivision by
comparing the estimated costs of the Coordinated Care Initiative,
as approved by the federal government, and the estimated costs of
the program if the Coordinated Care Initiative were not operative.
The determination shall also include any net savings to the General
Fund achieved through the tax imposed pursuant to Article 5
(commencing with Section 6174) of Chapter 2 of Part 1 of Division
2 of the Revenue and Taxation Code.

(3) The estimates prepared by the Director of Finance, in
consultation with the Director of Health Care Services, shall be
provided to the Legislature.

(c) (1) Notwithstanding any other law, if, at least 30 days prior
to enrollment of beneficiaries into the Coordinated Care Initiative,
the Director of Finance estimates pursuant to subdivision (a) that
the Coordinated Care Initiative will not generate net General Fund
savings, then the activities to implement the Coordinated Care
Initiative shall be suspended immediately and the Coordinated
Care Initiative shall become inoperative July 1, 2014.

(2) If the Coordinated Care Initiative becomes inoperative
pursuant to this subdivision, the Director of Health Care Services
shall provide any necessary notifications to any affected entities.

(3) For purposes of this subdivision and subdivision (d) only,
“Coordinated Care Initiative” means all of the following statutes
and any amendments to the following:

(A) Sections 14132.275, 14183.6, and 14301.1 of the Welfare
and Institutions Code, as amended by Chapter 37 of the Statutes
of 2013.

(B) Sections 14132.276, 14132.277, 14182.16, 14182.17,
14182.18, and 14301.2 of the Welfare and Institutions Code.

(C) Article 5.7 (commencing with Section 14186) of Chapter
7 of Part 3 of Division 9 of the Welfare and Institutions Code.

(D) Sections 12302.6, 12330, 14186.35, and 14186.36 of the
Welfare and Institutions Code.

(E) The amendments made to Section 12302.21 of the Welfare
and Institutions Code, as made by Chapter 439 of the Statutes of
2012.

(d) (1) Notwithstanding any other law, and beginning in 2015,
if the Director of Finance estimates pursuant to subdivision (b)
that the Coordinated Care Initiative will not generate net General
Fund savings, the Coordinated Care Initiative shall become
inoperative January 1 of the following calendar year.